Netflix (NFLX) is Down 19% Since Mid-August... Here's the Rub
While it is easy to blame the recent market malaise for the weakness seen in market darling Netflix (NASDAQ: NFLX) over the past few weeks, something else is at play... in fact, a lot of somethings.
Below are several reason for today's 3% slide and the 19% sell-off since mid-August:
- Apple is reportedly entering original programming and is said to be going after some big names
- Apple is expected to release an updated Apple TV at its September 9th event. The device is expected to enhance the streaming video experience and may have voice-activation through Siri.
- Netflix dropped Epix, which was picked up by Hulu
- Today, Hulu announced it will plans to offer a commercial-free option to its subscribers for $11.99 per month.
- Citron Research, fresh off its Ambarella victory, today announced a new short in Netflix. The firm sees the stock dropping to $80.
- Netflix lost it biggest hedge fund supporter in Carl Icahn after he sold his remaining Netflix stock back in June. Icahn was somewhat of a put in the stock.
Meanwhile, many analysts are still very bullish on Netflix, citing the internationally growth opportunity. Pivotal Research analyst Jeffrey Wlodarczak has a 'Street-High' $175 price target on the stock. He sees the company reaching 70 milion subscirbers in the U.S. and 125 million internationally by 2021. This would boost EPS to $8, the analyst said.